Brick-and-Mortar Casinos Maintain Dominance in US Gambling Industry

The report found that casinos captured the largest share of the market, accounting for 63% of the total revenue, followed by lotteries at 23%. Distributed gaming and route operations, sports betting, charity, and racing made up the remaining 12%. The online channel, which includes online casinos, poker, sports betting, iLottery, and pari-mutuel ADW, represented 9% of the total revenue, up from 7% in the previous year. 

More States Legalize Sports Betting, but Brick-and-Mortar Casinos Maintain Dominance

The legal gaming landscape in the US has changed significantly since May 2018 when the US Supreme Court ruled that states could decide their laws on sports betting. Since then, more than 30 states have legalized gambling in sports events.

Six states now permit iGaming with interactive slot machines and table games, further expanding the online gaming market. However, traditional brick-and-mortar casinos remained the dominant force in the industry, with gross gaming revenue (GGR) from commercial and tribal casinos totalling $91 billion, or 58% of the overall gaming win.

Including revenue from online gaming and sports betting linked to physical casinos through third-party partnerships, the total GGR for casinos was $98 billion, or almost 63% of the net win in 2022. Despite the many new legal gaming options available to players, casinos continue to account for the lion’s share of the industry’s revenue.

US Gaming Industry Shatters Annual Revenue Record in 2022 According to AGA Report

In February, the American Gaming Association (AGA) reported that the US commercial gaming industry set a new revenue record in 2022, generating $60.4 billion. This marks the second consecutive year that the industry has broken its annual revenue record, surpassing the previous year’s revenue of $53 billion. The record-breaking year was driven by all-time high quarterly revenue of nearly $15.9 billion in Q4 2022, with both sports betting and iGaming contributing to the growth. Traditional gaming also experienced a 1.7% year-on-year increase.

AGA President and CEO Bill Miller attributed the industry’s success to its ability to outpace expectations. He stated: “American adults are choosing casino gaming for entertainment in record numbers, benefiting communities, and taking market share from the predatory, illegal marketplace.” 

The industry continues to diversify its offerings, with retail gaming accounting for 80.5% of total revenue, and online gaming contributing 19.5% to the revenue.

In traditional gaming, table games experienced a 13.9% year-on-year increase in revenue, while slot machines showed steady 5.1% annual growth. The legal sports betting market saw record highs in handle and sportsbook revenue. Meanwhile, online casino revenue in limited iGaming states increased 35.2% year-on-year to $5 billion.

Las Vegas and Atlantic City retained their positions as the top commercial markets, while the Baltimore-Washington, D.C. market reclaimed its position as the third-largest gaming market.